The Balanced Scorecard has been through several generational changes over the years.
Allan Rodrigues, who specialises in balanced scorecards and earnings valuations, has taken the scorecard concept to its fourth generational change by linking the scorecard to its dyadic interfaces on the supply-value chain, the earnings value of the company, using it as a value advisory service and as a measure of the impact of the firm’s strategies on the community and the environment.
The Business Compass is a methodology designed by Allan Rodrigues to support the 4th Generation Balanced Scorecard.
This 4th Generation Balanced Scorecard (sometimes called Fourth Generation Balanced Scorecard or 4G Balanced Scorecard) uses The Business Compass to find the True North of the business. It links the four scorecard perspectives (1st Generation Balanced Scorecards), Strategy Mapping (2nd Generation Balanced Scorecards), Destinations Statements (3rd Generation Balanced Scorecards) to the current and future share value of the company (4th Generation Balanced Scorecards). The business compass also measures the impact of the vision and mission on the environment and the community at large. (4th Generation Balanced Scorecards).
It measures performance across the standard scorecard perspectives, the lag and leading indicators of performance and share price (and by extension the value gap between the current and projected value) to act as a value advisory service that captures the key value drivers of the company.
The combination of processes and measures permits organisations to make real time changes to their operating processes to create and sustain value.
The Business Compass consists of three balanced scorecards each driven by core people (and the learning agenda of the organisation) in that scorecard, specialised processes that drive each scorecard, and measures that indicate the achievements rather than the activities of the organisation.
This last is particularly important. Many organisations merely report activities rather than achievements in their triple bottom line statements when reporting the impact of the organisation’s business model on the environment and the community. It is important to measure achievement instead of activities.
To discuss The Business Compass, you can contact Allan Rodrigues at allan@theBusinessBinnacle.co.nz[no spam]
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